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What to do if you're made redundant

what benefits can i claim when made redundant

Worried about being made redundant? Here's what to do.


Know your rights

Take a peek at your contract of employment, which sets out your rights to redundancy pay and notice.

You are entitled to the statutory legal minimum redundancy pay, providing you have worked for your employer continuously for at least two years. You are due half a week's pay for every continuous year of service under age 22, a full week's pay for every full year between ages 22 and 41, and 1.5 times your weekly pay for every full year after age 41.

But this is only up to a ceiling of £475 a week, a little below average pay, which is currently £483 a week.

Calculate your entitlement at And remember, the first £30,000 of redundancy pay is tax free.

With any luck, your employer will be more generous. If they try to undercut these minimum limits - complain! Go to your employer first, then your union, if you have one, or any internal grievance system.

If that still doesn't help, the Advisory, Conciliation and Arbitration Service (Acas) can give you free and impartial advice.

Join together

If your company is axing more than 20 posts within 90 days, it is legally obliged to consult any recognised union, which can negotiate a redundancy package on your behalf.

If there is no union, the affected employees can appoint their own representatives.

If less than 20 posts are being made redundant, your boss must consult directly with you and anybody else losing their job.

Don't forget to include reimbursement for any unused holiday, outstanding expenses and employee benefits in any negotiations.

Your employer should try to find

another post in the company that reflects your skills and education, which you aren't obliged to accept. It isn't obliged to help you find work elsewhere.

If your employer wishes to keep you on or offers you a suitable alternative role and you refuse it without good reason, you won't be entitled to redundancy pay.

Don't be fooled

Being made redundant isn't the same as being sacked, and employers shouldn't exploit it to get rid of somebody.

If your company skims the correct procedures, or is hiding the real reason for getting rid of you, you could claim unfair dismissal. So if you announce you are pregnant and next day your post is suddenly made redundant, you might be a bit suspicious.

If complaining to your employer doesn't work, you may need to go to an employment tribunal .

Help! I'm self-employed!

Then bad news, I'm afraid. Statutory redundancy rights only apply to employees. Casual staff, agency workers and freelancers have little protection.

If you are made redundant, ou will be able to claim contributions-based Jobseeker's Allowance of up to £73.10 a week (£57.90 if under 25). And you only get that if you are actively seeking work.

Contributions-based Jobseeker's Allowance isn't means-tested, so any redundancy payout won't affect your entitlement. But you won't get a penny until the period covered by any pay you received in lieu of notice has expired.

The self-employed typically don't pay Class 1 National Insurance Contributions (NICs), so do not qualify.

This payout only lasts six months, after which you can claim income-based Jobseeker's Allowance, for those who haven't made enough NI contributions.

The table below breaks down how much you may expect to receive:

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